Day: December 8, 2012

The usual gaggle of religious fanatics and war profiteers permanently infesting our nation's capital keeps trying to get a US war up with Iran. We're told that Iran is a pariah state, isolated by world sanctions, but outside our bubble of propaganda you can find maps showing a healthy percentage of countries actively trading with it.

Stephen M. Walt sticks another pin in the hype bubble (emphasis added):

We are often told that Gulf states like Saudi Arabia and Kuwait are deeply worried about Iran, and eager for the United States to take care of the problem. This is usually framed as a reflection of the Sunni-Shiite divide, and linked to concerns about Iranian subversion, the role of Hezbollah, and of course the omnipresent fretting about Iran's nuclear energy program.

... But there may be another motive at work here, and Americans would do well to keep that possibility in mind.

That motive is the Gulf states' interest in keeping oil prices high enough to balance their own budgets, in a period where heightened social spending and other measures are being used to insulate these regimes from the impact of the Arab Spring. According to the IMF, these states need crude prices to remain upwards of $80 a barrel in order to keep their fiscal house in order.

Which in turn means that Saudi Arabia et al also have an interest in keeping Iran in the doghouse, so that Iran can't attract foreign companies to refurbish and expand its oil and gas fields and so that it has even more trouble marketing its petroleum on global markets. If UN and other sanctions were lifted and energy companies could operate freely in Iran, its oil and gas production would boom, overall supplies would increase, and the global price would drop.